Question

Which of the following is not a function of insurance?

A

Risk sharing

B

Assist in capital formation

C

Lending of funds

D

None of the above

Medium
Updated on : 2022-09-05
Solution
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Correct option is C)

Insurance is a means of protection from financial loss. It is a form of risk management primarily hedged against any uncertain future loss. The functions of insurance are risk sharing, assisting in capital formation, economic progress, etc. Lending of funds is not a function of insurance. It is a function of banks.

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